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Borders to Sell Overseas Businesses

By

Jeffrey A. Trachtenberg

Updated June 6, 2008 12:01 a.m. ET

Borders Group Inc. reached an agreement to sell its holdings in Australia, New Zealand and Singapore to Pacific Equity Partners' A&R Whitcoulls for as much as $104 million, easing the financial pressure on the U.S. book chain.

Borders' stock jumped 18% on the news. The collapse of a previous deal to sell the Australian and New Zealand businesses earlier this year had quickly been followed by the company's disclosure of a potential liquidity problem and its decision to put itself up for sale. As of 4 p.m. New York Stock...